wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A and B are partners with the capital Rs. 1,00,000 and Rs. 80,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 40,000 is revalued as Rs. 70,000. What will be value of goodwill in the books after the admission of C?

A
Rs. 1,10,000.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Rs. 70,000.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Rs. 40,000.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Rs. 30,000.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is D Rs. 70,000.
Value of goodwill in the books after the admission of C= Rs 70000. Because the goodwill has been revalued before the admission of C.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Issue of Shares
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon